Vietnam’s small banks more at risk from weak loan portfolios

Top banks are more resilient to nonperforming assets, S&P said.

Vietnam’s small private banks are vulnerable to economic impacts of the trade uncertainty and geopolitical risks, warned S&P Global Ratings.

Vietnam’s export dependent economy could be undermined by tariffs and geopolitical related risks, with a flow-on impact on banks’ asset quality, the ratings agency said.

“The creditworthiness of large state-owned banks and top-tier joint stock commercial banks are more resilient to a higher level of nonperforming assets, according to our stress scenario. Smaller Tier 2 banks are more vulnerable, reflecting a higher stock of weak loans and thinner financial buffers,” S&P said in a report on 2 October 2025.

S&P’s stress scenarios show that the smaller banks would bear the brunt if nonperforming loans rise moderately to necessitate increased provisioning.